What would you call the ideal buyers market? How about this scenario:
- House prices at a 4-year low
- 30-year mortgage rates below 6 percent and the possibility of further cuts ahead
- Huge selection of available real estate to choose from
- Implementation of government cash subsidy program
Sounds like utopia to me. So why aren't people rushing out to take advantage of what could be the investment climate of a lifetime?
Unfortunately, people find it easier to believe the bad things, and instead of focusing on these positives, are choosing to cloak themselves in the blanket of doom and gloom that is being projected by the media. Yes, there was a bit of a blip in the stock market, and economists are predicting the possibility of a recession, but focus on the up side. Wouldn't it be easier to withstand the storm of a recession, after closing a deal on the home of your dreams with a 30-year mortgage rate you know you can afford?
Consider real estate guru Donald Trump; his investment strategy was never "buy high and sell low". It's during times like these, in a down market that fortunes are made. If you've ever considered purchasing a vacation or investment property, now is the time.
Another way to take advantage of the low interest rates is to use them to increase your cash flow. If you're not planning on selling your home, then look into refinancing your mortgage at a lower rate and pay down those credit cards. Don't fall into the trap of adding more debt; use the cash flow to decrease your principal as well.
Contact the credit card companies and request a lower interest rate, and if they refuse, tell them you plan on consolidating your cards and paying them off. In most cases, they'll take the bait and lower the rates.
The objective is to take advantage of the current economic environment and make it work for you. You'll also be in a better position to withstand any bumpy roads that may be ahead.
